ZENITH FINANCIAL FOCUS – ANALYSIS OF 2018 Q3 FINANCIAL PERFORMANCE

Zenith Bank (Ghana) Ltd. has year on year consistently sustained the momentum of positioning itself as a reputable financial institution and the Bank of choice for the Ghanaian banking populace. The Zenith brand has a strong internal culture, built from the strength of its people, commitment to service excellence, a solid technological backbone, and most importantly the unflinching confidence that its cherished customers continue to repose in the bank.

Zenith Bank’s philosophy has long been built on delivering excellent service to its customers – a strategy the bank considers critical to the success of its business operations.

A clear indication of the Bank’s stellar performance is evidenced in its unaudited financial statements for the nine months ended September 30, 2018.

Despite the numerous challenges faced by the banking and larger financial services sector in the country, the slower than expected growth in Africa’s economy in 2018 (according to a World Bank report), the increase in the minimum capital requirement from GHS120m to GHS400m as well as the challenges imposed by the various consolidations in the marketplace, Zenith Bank’s profitability increased from GH¢ 157 million for the same period in 2017 to GH¢ 216 million; representing a growth of more than 37%.

The Bank’s performance in profitability therefore strongly demonstrates its ability to deliver value to its stakeholders, even during challenging economic times.

The Bank’s total assets for the period was GH¢ 5.7 billion, signifying an increase of 39% from the 2017 figure of GH¢ 4.1 billion. The strong asset base was anchored by a significant investment in the amount of over GH¢ 4.6 billion, up from GH¢ 2.2 billion in 2017, representing over 100% increase. Cash and cash equivalents for the period stood at over GH¢ 210 million – indicating a strong liquidity position to meet customers’ and the bank’s short-term financial requirements.

Zenith Bank Ghana’s parent company, Zenith Bank Plc, which has its corporate headquarters in Nigeria, is the biggest bank in Nigeria and the 10th largest bank in Africa by Tier 1 capital according to The Banker Magazine’s ranking of the top 1000 global banks.

The Bank has lent significant support to the real sector through its various loans and advances to customers. This reiterates the bank’s firm commitment to support the growth of its customers’ businesses and by extension contribute to the expansion of Ghana’s economy in general.

Total equity for the period under review was more than GH¢ 855 million. Zenith Bank also achieved significant results in income generation, increasing interest income by over 30% to GH¢ 521 million.

Zenith Bank Ghana, in February 2018, became the first bank in the country to meet the new minimum capital requirement of GH¢ 400 million set by the Central Bank – ten months ahead of the 31st December 2018 deadline. This feat was made possible by the 100% dividend retention policy of the Bank since inception. Again, this demonstrates the long term interest Zenith Bank has in this economy. The Bank’s huge capital base also means that the Bank has the requisite capacity to compete at the highest levels.

The third quarter financial performance re-emphasizes the bank’s strong capital base and demonstrates the bank’s solid capacity to undertake larger ticket. This gives customers of the bank a renewed assurance that the Zenith brand is indeed growing bigger, stronger and faster.

Since the Bank’s inception in Ghana 13 years ago, the Bank has remained consistently dedicated to the continuous pursuit of unrivalled customer service in the industry, anchored on a foundation of financial strength and stability. In recognition of this, the bank was awarded the Excellence in Customer Service award at the 2018 Ghana Business Awards. The Bank was also adjudged the Best Customer Service Bank of the Year 2018/19 as well as the Overall Best Customer Service Company of the Year 2018/19 at the 7th Ghana Customer Service awards.

Other prestigious awards earned during the period include Best Bank in Ghana 2018 (Global Finance), Best Banking Group Ghana 2018 (World Finance), Most Outstanding Bank in Ghana 2018 (Middle East and Africa Markets Magazine), Most Innovative Bank of the Year 2018 (The European) as well as Excellence in Procurement & Supply Chain Company of the Year (Banking Sector) at the Ghana Procurement & Supply Chain Awards 2018.

Zenith Bank is one of the few banks in the industry that has obtained the internationally recognized ISO27001:2013 and PCI DSS Certifications. These certifications will, amongst other things:

Enhance the Bank’s brand perception and lend credence to the Bank’s aspiration to be the preferred financial institution in the country;

Protect the privacy of customer information by safeguarding its confidentiality, integrity and availability;

Reassure our customers that the Bank has put in place best practices to control and mitigate risks; and,

Enrich customer experience with the Bank’s products and services.

In an era where cyber activities and cyber-crimes are rife, Zenith Bank has demonstrated its commitment to embracing global best practices in ensuring the integrity of its customer data and a secure operating environment.

Zenith Bank customers therefore will be justified to trust that the Bank will always serve them in their best interest.